The chemical sector’s growth is projected to create 1 million jobs in 2024, playing a crucial role in India’s economic landscape.
India’s chemical market, valued at $220 billion in 2023, is poised to grow to $383 billion by 2030, with an estimated compound annual growth rate (CAGR) of 8 percent. Globally, the industry’s growth rate is projected at 1 percent from 2021 to 2030. India ranks as the sixth-largest country in the global chemical industry by sales and has attracted substantial foreign direct investment (FDI), receiving $21.7 billion from April 2000 to September 2023.
The sector is fully open to foreign investors with automatic approval, enhancing investor confidence. Investments are expected to increase by $420 billion through Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs). Additionally, initiatives by the Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) will boost skill development.
Specialty chemicals are anticipated to grow at a 12 percent CAGR from 2020 to 2025, driven by innovation and rising demand. The market is expected to expand by $29.7 billion by 2024, with a CAGR of 3.26 percent from 2024 to 2029.
Over the next five years, the market is expected to grow at a CAGR of 2.71 percent, reaching $143.3 billion. The number of businesses is predicted to rise to 15,730 by 2024, with employment in the industry expected to reach 1 million people.
New policies, improved infrastructure, and affordable labor resources are set to boost this sector further. Specialty chemicals, agricultural chemicals, and petrochemicals are identified as the most promising areas for growth.